Rules of Claim Interest for Delayed Payment of Pension and Gratuity etc.

Pension Regulations for the Army Part – 2 provides following regulations in support of claiming interest for late payment of pension and gratuity. The Regulation is reproduced below :-

Regulation 49 (a) If the payment of retirement / death gratuity has been authorised after its payment become due, and it is clearly established that the delay in payment was attributable to administrative lapse and for no fault of the retiring individual/claimant, interest at the rate applicable to Defence Services Officers Provident Fund or Armed Forces Personnel Provident Fund deposits on the type of cases mentioned in clause (e) below .

49 (b) The interest shall be payable till the end of the month preceding the month in which the payment of gratuity is actually authorised to the claimant.

49(c) In every case in which it is established that the delay in the payment of gratuity was attributable to administrative lapses and there was no fault of retiring/service personnel or the claimant concerned, the interest shall be authorised by the Ministry of Defence in consultation with the Service Headquarters and audit authorities concerned through a Government sanction without waiting for the outcome of the disciplinary proceedings against the defaulting official(s).

49(d) In all case where interest has been paid, action shall be taken to fix responsibility for the delay in the payment of gratuity and disciplinary action shall be taken against the official(s) responsible for it.

49(e) Types of cases where interest may be claimed on delay in payment of retirement or death gratuity, are as given below.

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